Disney CEO Bob Iger Hints at Tiered Pricing for Streaming Services

During the 1st quarter earnings call earlier this month, Walt Disney Company CEO Bob Iger talked about a $4.99 for ESPN Plus, the new streaming sports service that’s set to debut soon. Now, Iger is suggesting that the ESPN service, as well as the still unnamed Disney entertainment service, may adopt a tiered pricing structure.

At the Morgan Stanley Technology Media & Telecom Conference, Iger called the $4.99 ESPN Plus price, “reasonable,” based on what offerings will be available when the service is launched in late March or early April. Disney, however, is working to add Major League Baseball and National Hockey League out-of-market packages to the service. Iger says, “I imagine you will see the price-rise for the augmented service. We have the opportunity to enable customers to buy seasons, teams, weekends.”

In talking about the Disney streaming service set to debut in late 2019, Iger said, “We’ll see how that goes and we’ll have a better sense of what kind of volume we can provide after the Fox transaction closes.” He also suggests the addition of National Geographic and other Fox brands.

Iger said that the changes in the way people consume media have had a “faster and a more profound impact than we ever expected” and that the two new apps would help Disney “participate in the very business that is doing the disrupting.”